Mr Cosgrove, who was appointed to the Qantas board in 2005 after serving as chief of the Australian Defence Force, resigned from the board on Tuesday.

He was one of the airline’s longest-serving directors, having served on the board when it recommended a highly leveraged private equity takeover in 2006 that was ultimately unsuccessful.

Mr Cosgrove’s departure comes as the airline conducts a strategic review in response to tough market conditions as a result of strong competition from
Virgin Australia Holdings
. The board may decide to sell assets, such as a minority stake in its frequent-flyer program or Jetstar, and has announced plans to cut 1000 jobs and $2 billion of costs.

In a statement following Mr Cosgrove’s resignation on Tuesday, Mr Clifford did not make any comment as to whether a new director would be appointed as a replacement.

“We congratulate Peter on his appointment as Australia’s next governor-general," Mr Clifford said. “During his time with Qantas, Peter has provided valuable leadership and brought a unique perspective to the deliberations of the Qantas board, the board’s safety, health, environment and security committee and to the Qantas Superannuation Board. He is held in high esteem by everyone at Qantas and we all wish him well."

Qantas last year appointed Jacqueline Hey and Maxine Brenner as new directors in August. That was months after the death of
James Strong
in March and the resignation of Corinne Namblard because of a corruption scandal surrounding an Italian bank in February. Another director,
Patricia Cross
, left the board after the airline’s annual meeting in October.

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The Australian Financial Review understands Qantas does not have a strict policy of “one in, one out" when it comes to its board, which will be one-third female after Mr Cosgrove’s departure.

Some observers have criticised the board for being relatively light on aviation experience. However, director
Richard Goodmanson
is a former chief executive of America West Airlines,
Barbara Ward
once ran Ansett Worldwide Aviation Services and William Meaney is a former executive at Swiss International Airlines and South African Airways.